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The USS Enterprise under construction at the Riverside Shipyard in 2255
In the alternate reality, Riverside Shipyard was the Starfleet Shipyard 2-1A construction facility located in Sector 47 Riverside, Iowa, Earth. The USS Enterprise was constructed there in the 2250s. The shipyard was a location from where cadets for Starfleet Academy embarked. (Star Trek)
Background information
According to co-writer Roberto Orci, the shipyards were constructed in Iowa in honor of George Kirk's sacrifice on the USS Kelvin: "Shortly after the heroic death of George Kirk, the Iowa shipyards were erected by Starfleet to honor and commemorate the sacrifice. Hence, the Kelvin salt shaker in the diner, etc…." [1]
The novelization of the film suggests that the decision was more a matter of location, as central Iowa was close to the Mississippi River and a still-industrial Midwest, but sufficiently isolated that a catastrophic accident would endanger few people outside of the shipyard itself.